Step 8 of the 12-Step Program teaches the difference between systematic and unsystematic risk, how concentrating stocks in a portfolio doesn't pay, and why it's better to own thousands of companies instead of just a few. Unsystematic risk is company specific risk (e.g. lawsuits, fraud, bad management, and other unique circumstances of individual companies) and does not have an expected return. It is simply unrewarded risk and can be avoided by proper diversification. On the other hand, systematic risk is market wide risk that everyone is subjected to, including war, recession, and inflation. Owning stocks and bonds in an appropriate diversified blend is rewarded for the level of risk taken.

The data provided in all charts referring to IFA Index Portfolios is hypothetical backtested performance and is not actual client performance. Only data for the IFA Index Portfolios is shown net of IFA's highest advisory fee and the underlying mutual fund expenses. All other data, including the IFA Indexes, does not reflect a deduction of advisory fees. None of the data reflects trading costs or taxes, which would have lowered performance by these costs. See more important disclosures at ifabt.com.